Connect with us
DAPA Banner

Crypto World

South Korea’s People Power Party proposes bill to abolish 22% crypto tax

Published

on

South Korea’s People Power Party proposes bill to abolish 22% crypto tax

Some South Korean lawmakers are pushing back against the ruling party’s plan to levy a 22% tax on cryptocurrencies.

Summary

  • People Power Party has introduced a bill to amend the Income Tax Act and scrap the planned crypto gains tax ahead of its 2027 rollout.
  • The proposed 22% tax on crypto profits above 2.5 million won has already been delayed three times amid continued political disagreement and industry pushback.

A bill introduced by the right-wing People Power Party on Thursday seeks to amend the Income Tax Act and fully abolish the planned taxation on cryptocurrency gains, according to local media reports.

The tax plan was originally introduced in 2020 by the Ministry of Economy and Finance and proposed a 20% national income tax and 2% local tax on crypto profits that exceed 2.5 million Korean won. Since its inception, the proposal has been at the center of a heated political debate and has been postponed three times.

Advertisement

It was originally set to be implemented in 2022, but the effective date is now slated for Jan. 1, 2027.

However, the opposition contends that the proposal raises concerns around fairness and equity in taxation across investment classes, especially as South Korea has previously repealed income tax on other financial investments such as stocks. Critics of the framework argue that taxing only crypto investors is unfair.

Several major exchanges in the country have also argued that the tax structure would hamper trading activity and reduce market participation.

Interestingly, the bill cites the U.S. Securities and Exchange Commission’s recent guidance on how most cryptocurrencies may not qualify as securities. The People Power Party’s bill highlights this position to argue that crypto should not be treated the same as traditional securities.

Advertisement

Kim Han-gyu, the senior deputy floor leader for policy of the Ruling Democratic Party, has reportedly said that the left-wing party will discuss the bill, but noted that such a proposal has not been seriously considered so far.

As one of the largest crypto markets in the world, South Korea has been reevaluating its approach to taxation on digital assets.

Last year, the country’s Ministry of Small and Medium Enterprises and Startups proposed an amendment to the framework which would allow crypto firms to register as venture companies and become eligible for tax cuts and other benefits.

Advertisement

Source link

Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Crypto World

Bitcoin Faces Little Chance of Holding Its 200-Week Moving Average for Long

Published

on

Bitcoin Faces Little Chance of Holding Its 200-Week Moving Average for Long

Bitcoin (BTC) price support could “fail” by the weekly close in a major blow to Bitcoin bulls, analysis warns.

Key points:

  • BTC price downside versus local highs at $76,000 nears 10%.

  • Bitcoin brings its 200-week trend line back into focus, but little hope remains that it will rescue price.

  • A trader warns of “months” of ranging at current levels.

200-week BTC price trend line “unreliable”

In his latest X update on Thursday, crypto trader and analyst Rekt Capital brought a long-term BTC price trend line back into focus.

The 200-week exponential moving average (EMA) for BTC/USD, currently at around $68,300, is coming in for its first retest in over a week.

Advertisement

“Bitcoin is pulling back in towards the 200-week EMA (black) to check if it can successfully turn the EMA into new support after having broken it as resistance last week,” he summarized.

The 200-week EMA has long been on the radar for traders. Along with its equivalent simple moving average (SMA) near $59,000, it forms a key support band for price as Bitcoin’s latest bear market takes shape.

BTC/USD one-week chart with 200 EMA, 200 SMA. Source: Cointelegraph/TradingView

BTC/USD has crisscrossed the 200-week EMA multiple times in 2026, but its significance remains.

“A successful retest of the EMA would fully confirm the breakout beyond it to enable future trend continuation to the upside and further build on this Macro Relief Rally,” Rekt Capital continued.

“However, it is important to consider whether Bitcoin could fail this upcoming retest into new support, in the same way price failed to bearish retest the 200 EMA into new resistance before.”

BTC/USD one-day chart with 200-week EMA. Source: Cointelegraph/TradingView

The post describes the EMA as “unreliable” thanks to price crossing both above and below it with ease.

“A Weekly Close below the 200 EMA would mean that price failed its upcoming retest to in turn strengthen the case for the EMA acting as unreliable support,” Rekt Capital concluded.

Advertisement

Bitcoin trader: Current range could last “months”

The current low-time frame BTC price trading range contains multiple important lines in the sand.

Related: $58K BTC price still in play? Five things to know in Bitcoin this week

Bitcoin’s old all-time high from 2021 is at $69,500, while its 2025 lows currently mark the start of overhead resistance at $74,500.

So far, bulls have been unable to clear sellers and continue past $76,000, and many market participants expect new macro lows to come as a result as price retreats by nearly 10%.

Advertisement

Updating X followers on his thoughts, trader Roman, long entertaining a trip to $50,000 or lower, said that price may form a frustrating sideways range first.

“It’s very possible we range here for months,” he warned.